India Steel Works Embarks on Strategic Land Sale in Navi Mumbai
Unlocking Value and Reducing Debt
India Steel Works has announced plans to divest its 2-acre plot in Navi Mumbai, with the dual objective of unlocking the value inherent in its real estate holdings and significantly reducing its existing debt.
Debt Reduction Goals
According to Mr. Ashwin Gupta, Executive Chairman of India Steel Works, the sale of this land is expected to yield in excess of Rs 35 cr. This substantial influx of capital will be primarily utilized to halve the company's current debt of Rs 70 cr. This strategic move is envisioned to position the company on a firmer financial footing.
Future Outlook and Growth Strategies
Once the company achieves its objective of becoming debt-free, the proceeds from the land sale will be redirected to augment working capital. This enhanced liquidity is expected to catalyze a significant increase in turnover. Mr. Ashwin Gupta expressed optimism about the company's future financial performance, indicating that India Steel Works is on track to report profits in the financial year 2012.
Expedited Sale Process
The company is seeking to consummate the sale of the Navi Mumbai plot with all due haste, underscoring its commitment to rapidly executing its strategic restructuring plans.